As the structure of Korean economy evolves into a more advanced knowledge based economy, productivity enhancement is expected to play a critical role in boosting growth potential of Korea. But if the productivity enhancement does not contribute to the creation of employment, resulting in so called “Jobless Growth”, then it may worsen the income polarization which Korean Society is suffering from and thereby weakens the foundation of social integration. This report analyzes both interna-tional and Korean industry time series data and finds out that there is indeed some negative correlation between productivity growth and employment. In order to avoid the negative effect of productivity growth on employment, therefore, we need to adopt active labor market policies including more effective job training as well as broader employment services both in public and private sectors.